Following Years of Governance Failures, Court Orders UDF IV to Hold Trustees Election in 2024
DALLAS, April 22, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC ("NexPoint") today announced its intent to nominate a slate of four independent trustees for election to the Board of Trustees of United Development Funding IV ("UDF IV" or the "Company"), a real estate investment trust in which NexPoint is a significant shareholder. This follows an order from the Circuit Court for Baltimore City (the "Court") requiring UDF IV to hold an Annual Meeting on or before December 31, 2024, during which four of the five trustees must stand for election.
- This follows an order from the Circuit Court for Baltimore City (the "Court") requiring UDF IV to hold an Annual Meeting on or before December 31, 2024, during which four of the five trustees must stand for election.
- "NexPoint is pleased that the Court ruled that shareholders have a right to elect all independent trustees of UDF IV in 2024.
- Earlier this year, amid litigation initiated by NexPoint, UDF IV removed indefensible bylaw restrictions limiting the shareholders' ability to nominate Board candidates.
- Additionally, in February, NexPoint highlighted further shareholder mistreatment associated with the distribution of Fair Fund settlement payments to certain UDF IV shareholders.